The Ministry of Industries, Mining and Trade launched five steel projects with a total investment of 21.39 trillion rials ($133 million) during the 11 months to Feb. 19.
Two of the projects became operational in Isfahan Province while the rest went on stream in the provinces of Lorestan, Fars and Khuzestan, IRNA cited the Industries Ministry's data.
The new projects are related to the production of pipes and profiles, steel sheets, direct-reduced iron and steel ingots, which created a total of 1,000 jobs.
Pars Steel Factory, located in Haft Tappeh, Khuzestan Province, is one of the five projects. It has the capacity to produce 100,000 tons of steel ingots per year in its first development phase. It became operational with an investment of €5 million sourced from the National Development Fund of Iran, the country's sovereign wealth fund, in addition to 245.1 billion rials ($1.53 million).
Pipe and profile factory in Shahreza, Isfahan Province, is another one. It has an annual production capacity of 500,000 tons. Another steel project went on stream in Isfahan to produce steel sheets.
Khorramabad Steel Complex in Lorestan Province came on stream with a nominal production capacity of 80,000 tons and an actual capacity of 75,000 tons of different types of steel sheets per year.
And finally, Pasargad Steel Company in Fars Province became operational late last year to produce direct reduced iron. The second and the third development phase of the company, each with 1.8 million tons of capacity, have been planned to become operational by the end of the fiscal 2022-23.
Capacity Expansion on Track
The Iranian Mines and Mining Industries Development and Renovation Organization's latest report on development of under-construction steel production units shows a total of 19.1 million tons will be added to Iran’s annual steel production capacity by the time all these units are completed in the fiscal 2023-24.
Iran's current steel production capacity stands at over 35 million tons per year, according to former deputy industries minister, Jafar Sarqeini.
Iran aims to increase its steel production capacity to 55 million tons by March 2025, as part of a 20-year Vision Plan designed for the strategic industry.
The addition of 19.1 million tons by the time the under-construction projects come on stream to the current capacity means the aggregate output capacity will reach 54.1 by March 2024, which is only 900,000 tons short of the target that need to be reached by Iranian steelmakers within one year.
Arian Steel Company in Qazvin, Qazvin Province, was to have a production capacity of 0.6 million tons per year once completed by the end of last Iranian year (March 19).
Zarand Iranian Steel Company, located in Zarand County, Kerman Province, will have a production capacity of 1.5 million tons per year. It is expected to be launched by the end of the fiscal 2020-21.
The second phase of South Kaveh Steel Company in Bandar Abbas, Hormozgan Province, will add 1.2 million tons to Iran's annual steel production capacity. It is expected to be inaugurated this year.
Located in Chaharmahal-Bakhtiari Province, Sefid Dasht Steel Company will have 0.8 million tons per year of production capacity upon completion. It is also expected to become operational this year.
Isatis DRI Plant will add 0.7 million tons to the country’s annual steel production capacity. Located in Yazd Province, the project is expected to be launched this year.
Butia Iranian Steel Company in Kerman is due to become operational in the fiscal 2021-22. It will have a production capacity of 1.5 million tons per year when completed.
The production capacity of Jahan Ara Arvand Steel Factory, located in Khuzestan Province, will reach 1.2 million tons and will come on stream in the fiscal 2021-22.
Also coming on stream in the fiscal 2021-22, Ghadir Steel Company in Neyriz, Fars Province, will have a capacity of 0.8 million tons per year upon completion.
The development of Mianeh Steel Company in Mianeh County of East Azerbaijan Province will add 0.8 million tons to the annual capacity of the country's steel production. It is expected to be inaugurated in the fiscal 2021-22, during which Ghaenat Steel Company located in South Khorasan Province is also expected to have come on stream. It will have a production capacity of 0.8 million tons per year upon completion.
Shadegan Steel Company in Khuzestan is also due to be inaugurated during the same year to add 0.8 million tons to the annual capacity of Iran's steel output.
Both located in Yazd Province, Iran Alloy Steel Company and Sarmad Abarkooh Iron and Steel Industries Company are expected to come on stream in the fiscal 2021-22. The former will have a capacity of 0.7 million tons/year upon completion, while the latter will have a capacity of 0.6 million tons/year.
Torbat Heydarieh Steel Company in Khorasan Razavi Province will be launched in the fiscal 2022-23 with a capacity of 1.4 million tons per year.
Golgohar Iron and Steel Company’s development plan is expected to be completed in the following year, March 2023-24, adding 3 million tons to Iran's production capacity. The project is located in Kerman Province.
Other units with capacities of under 500,000 tons per year will add an aggregate of 1.8 million tons/year to the total output capacity, bringing the total capacity of development plans under progress to 19.1 million tons by March 2023-24, according to the IMIDRO report.
